Boston Beer (SAM) AI Stock Analysis

• Market Cap: $2.45B
• Dividend Yield: N/A
• Average Volume (3M): 149.25K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 0.27
• Revenue Growth: 0.79%
• EPS Growth: -24.27%
• Country: US
• Employees: 2,537
• Sector: Consumer Defensive
• Sector Strength: 62
• Industry: Beverages - Alcoholic
• EPS (TTM): 2.16
• Shares Outstanding: 9,078,006
• 10 Day Avg. Volume: 207,872
• 30 Day Avg. Volume: 149,247
• PEG Ratio: 3.93
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.04
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 4.00
• 1Y Price Target: $270.46
• Price Target Upside: 22.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: $267.00 ▲(21.35%Upside)

Boston Beer's solid financial performance and strategic initiatives like stock repurchases are key strengths. However, technical indicators show mixed signals, and valuation metrics suggest the stock may be overvalued, which slightly dampens the overall score.

Positive Factors

Distribution Expansion

A 3x increase in distribution will provide better visibility on performance and incrementality over the coming months.

Gross Margin Improvement

The potential for gross margins to recover to high-40s% is driven by SAM’s initiatives on procurement, waste and network optimization, and brewery performance.

Revenue and EPS Performance

SAM delivered a notable beat to revenue, gross margin and EPS, marking a good start to the year.

Negative Factors

Structural Demand Headwinds

There are structural demand headwinds from demographics, health & wellness trends including GLP-1 medications, and cannabis, which have exacerbated beer category weakness.

Tariff Impact

Tariffs are expected to impact EPS by $1.25-$1.90 this year.

Twisted Tea Performance

Analysts are more cautious given continued weak trends for Twisted Tea, which accounts for nearly 60% of SAM's volumes in tracked channels.

Boston Beer Business Overview & Revenue Model

Company Description

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, and hard seltzers under the Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head, Angel City, Coney Island, Concrete Beach brand names. The company markets and sells its products to a network of approximately 400 wholesalers in the United States, as well as international wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other retail outlets. It also sells in products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.

How the Company Makes Money

The Boston Beer Company generates revenue primarily through the production, marketing, and sale of its diverse range of alcoholic beverages. Key revenue streams include sales of its Samuel Adams beers, which have established a strong market presence in the craft beer segment. Additionally, the company has successfully expanded into the hard seltzer and cider markets with its Truly and Angry Orchard brands, respectively, capitalizing on consumer trends towards alternative alcoholic beverages. The company operates through a network of distributors and retailers, which helps to ensure widespread availability of its products across the United States and select international markets. Strategic partnerships, such as those with wholesalers and distributors, play a crucial role in expanding brand reach and driving sales volume. Furthermore, Boston Beer's innovation in product development and marketing strategies contributes to maintaining its competitive edge and supporting its financial performance.

Boston Beer Financial Statement Overview

Summary

Boston Beer demonstrates solid financial health across its financial statements. The company maintains a stable income statement with consistent profitability margins, a strong balance sheet with low leverage, and excellent cash flow metrics that support its operational and strategic flexibility. While revenue growth has been modest, the firm's ability to generate cash and maintain low debt levels provides a solid foundation for future growth opportunities.

Income Statement

Boston Beer has shown a stable financial performance with a consistent gross profit margin of around 44%, reflecting strong profitability in its operations. The net profit margin has improved in the TTM period to 3.4% from 2.8% in the previous year, indicating better cost management or pricing strategy. Revenue growth has been relatively flat over the last period, which could be a concern if not addressed with strategic initiatives. The EBIT and EBITDA margins have seen some fluctuations, with the TTM EBIT margin at 4.7% and EBITDA margin at 11.5%, indicating manageable operating profitability.

Balance Sheet

The company's balance sheet reflects a strong equity position with an equity ratio of approximately 72.3% in the TTM, indicative of financial stability. The debt-to-equity ratio is low at 0.052 in the TTM, suggesting low financial leverage and risk. Return on Equity (ROE) stands at 8% for the TTM, which signifies moderate returns for shareholders. The company seems to have a reliable financial footing, though improvement in asset utilization could enhance overall returns.

Cash Flow

Boston Beer's cash flow performance is robust, with a strong operating cash flow to net income ratio of 3.58 in the TTM, indicating efficient cash conversion from operations. The free cash flow to net income ratio is also healthy at 2.59, showing good cash generation after capital expenditures. Free cash flow growth has been positive, supported by stable operating cash flows and reduced capital expenditure requirements. This positions the company well for future investments or debt repayment.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.07B	2.01B	2.01B	2.09B	2.06B	1.74B
	Gross Profit
926.65M	893.73M	852.37M	861.99M	797.79M	814.45M
	EBIT
97.79M	75.97M	100.00M	161.31M	106.35M	244.21M
	EBITDA
265.35M	245.78M	209.96M	242.67M	87.13M	317.44M
	Net Income Common Stockholders
71.51M	59.70M	76.25M	67.26M	14.55M	191.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.77M	211.82M	298.49M	180.56M	26.85M	163.28M
	Total Assets
1.39B	1.25B	1.43B	1.42B	1.39B	1.38B
	Total Debt
75.06M	35.94M	45.27M	54.14M	61.48M	67.40M
	Net Debt
59.29M	-175.88M	-253.22M	-126.42M	34.63M	-95.88M
	Total Liabilities
405.07M	333.83M	352.06M	352.22M	408.17M	421.86M
	Stockholders Equity
984.92M	916.19M	1.08B	1.07B	983.41M	956.97M
Cash Flow		Free Cash Flow
185.25M	172.62M	201.06M	109.36M	-91.62M	113.41M
	Operating Cash Flow
255.72M	248.89M	265.15M	199.94M	56.30M	253.41M
	Investing Cash Flow
-70.42M	-96.25M	-62.38M	-88.51M	-146.62M	-139.12M
	Financing Cash Flow
-238.29M	-239.31M	-84.84M	2.80M	-6.64M	12.32M

Boston Beer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 220.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAM, the sentiment is Negative. The current price of 220.03 is below the 20-day moving average (MA) of 232.34, below the 50-day MA of 238.19, and below the 200-day MA of 265.25, indicating a bearish trend. The MACD of -5.60 indicates Positive momentum. The RSI at 36.92 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAM.

Boston Beer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUD	79 Outperform	$140.00B	24.06	7.31%	1.19%	0.64%	10.02%
ABEV	78 Outperform	$39.00B	15.09	15.09%	5.92%	1.25%	-13.02%
FIZZ	77 Outperform	$4.34B	23.37	40.81%	―	0.34%	9.48%
SAM	73 Outperform	$2.45B	36.36	7.36%	―	0.79%	-24.27%
TAP	68 Neutral	$10.58B	10.50	7.90%	3.44%	-5.17%	-0.74%
Sector *	65 Neutral	$8.88B	15.03	4.75%	203.74%	3.58%	-2.49%
STZ	61 Neutral	$30.61B	49.10	-0.98%	2.37%	2.47%	-105.09%

Boston Beer Corporate Events

Boston Beer Announces Stock Repurchase Plan

Boston Beer Company held its 2025 Annual Meeting of Stockholders on May 14, 2025, where significant decisions were made regarding the election of directors and approval of executive compensation. The meeting saw the election of Class A and Class B Directors for one-year terms, the ratification of Deloitte & Touche LLP as the independent accounting firm, and the approval of executive compensation policies. Additionally, the company announced a 10b5-1 plan to repurchase up to $50 million of Class A Common Stock, reflecting a strategic move to manage liquidity and investment diversification.

The most recent analyst rating on (SAM) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Boston Beer stock, see the SAM Stock Forecast page.

Boston Beer Announces $50 Million Stock Repurchase Plan

On March 12, 2025, Jean-Michel Valette announced his decision to retire from the Board of Directors of Boston Beer Company after the 2025 Annual Meeting of Stockholders, clarifying that his departure was not due to any disagreements with the company. Additionally, on March 13, 2025, Boston Beer Company initiated a 10b5-1 plan to repurchase up to $50 million of its Class A Common Stock between March 31, 2025, and June 27, 2025, indicating a strategic move to potentially enhance shareholder value.